CPL Market Moved Marginally This Week (Feb 2-8, 2018)

Coco

2018-02-09

Market Review:

From the production cost, the international benzene prices fluctuated down. Sinopec reduced the posted prices for benzene by RMB 100/mt to RMB 7,100/mt. Dealing prices were weak. Caprolactam(CPL) producers’ production cost moved down. With the coming Spring Festival, the downstream demand was weak. Influenced by the transportation, the demand was on a need-to basis. Up to February 8, delivered prices for liquid CPL in East China were in the range of RMB 16,000-16,200/mt by acceptance. Traders’ offers for solid CPL were in the range of RMB 17,000-17,500/mt in cash.

Forecast:

The benzene prices will continue to move marginally in the short term. The support to the CPL producers’ production cost is weak. Downstream demand for CPL is modest. It is predicted that the CPL market will be thin and stable in the short term.